KINGBOARD Chemical Holdings, a manufacturer of laminates, will spend about $40 million of the funds from its new issue to expand production facilities in China. The company today launches a public offering of 75 million new shares at $1.09 each, with a prospective price-earnings multiple of 8.9 on a fully diluted basis and 7.5 on a weighted average. Net proceeds will amount to $73 million, of which about $18 million will be used to buy equipment for production of copper-clad laminates used in printed circuit boards (PCBs) for televisions and video products. About $14 million will be used to acquire equipment to make laminates used in PCBs for computers and office equipment and a further $8 million will go towards construction and relocation of plants to Shui Tian. The balance of $33 million will be held as general working capital. Kingboard's co-founder and chairman Paul Cheung Kwok-wing said the company would expand its product range and double its production capacity in volume terms by the end of 1994. The increase in production capacity was intended to meet the strong demand for laminates in Hong Kong, Guangdong and coastal regions in China, he said. Kingboard recently formed a joint venture with the Shenzhen Environmental Protection Bureau to recycle used etching solution. It is due to be operational by the end of the year.